Consort Medical to buy fellow UK pharma company Aesica

Cambridge medical technology business Consort Medical is buying pharmaceutical firm Aesica for £230m in a bid to diversify its markets.

Consort Medical said it would fund the acquisition with £115.9m drawn down under a new debt facility, £10m of existing cash and a fully underwritten rights issue which is expected to raise £95.3m and the issue of £11.8m of shares to Aesica management.

The rights issue, which was being underwritten by Investec, would consist of the issue of five rights issue shares for every eight existing shares at 540 pence per rights issue share, Consort said.

The company said it had also entered into a new facility agreement worth £160m with a group of four banks.

Consort Medical develops and makes disposable medical devices for drug delivery through its Bespak division. Aesica, based in Newcastle, provides contract development and manufacturing services for “finished dose and active pharmaceutical ingredients” to the pharmaceutical industry.